Meta has agreed to a sweeping $60bn, five-year deal with Advanced Micro Devices, acquiring chips and a 10% stake in the company as it doubles down on AI — the latest sign that the industry's hunger for processing power is only growing stronger.

Meta, the owner of Facebook, Instagram, and WhatsApp, has struck a landmark $60bn deal with semiconductor company Advanced Micro Devices — one of the most significant AI chip agreements in the industry's history. The five-year pact, which also sees Meta acquire a 10% stake in AMD, underscores just how aggressively the social media giant is racing to build out its artificial intelligence infrastructure.

Under the terms of the deal, AMD will supply Meta with 6 gigawatts worth of chips, beginning with 1GW of its forthcoming MI450 hardware in the second half of this year. But it goes beyond graphics processors. Meta will also purchase AMD's central processors, including a variant custom-built specifically for the platform — engineered to deliver high performance while keeping energy consumption to a minimum.

"Meta is making a big bet on AMD," said AMD chief executive Lisa Su, adding that Mark Zuckerberg has made clear his sweeping ambitions for the technology. "We want to use every aspect of our technology to really help Meta accomplish that."

The deal mirrors a similar agreement AMD signed with OpenAI last year, which was widely seen as a vote of confidence in the company's chips and software, sending its stock price surging. For AMD, landing Meta as both a major customer and a shareholder is another significant step in its bid to challenge Nvidia's dominance in the AI chip market.

Meta has separately struck a deal with Nvidia to purchase millions of additional AI chips, signalling that it is hedging its bets across suppliers rather than relying on any single partner.

The agreements reflect a broader industry trend — as the race to build ever-more-powerful AI systems intensifies, demand for the processors that power them shows no sign of cooling.